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91_SB0146eng SB146 Engrossed LRB9100650EGfg 1 AN ACT in relation to State bonds. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The General Obligation Bond Act is amended by 5 adding Section 1.5 and re-enacting Sections 2, 3, 16, and 20 6 as follows: 7 (30 ILCS 330/1.5 new) 8 Sec. 1.5. Re-enactment; findings; purpose; validation. 9 (a) The General Assembly finds and declares that: 10 (1) Article IV of Public Act 85-1135, effective 11 July 28, 1988, contained provisions amending or creating 12 Sections 2, 3, 16, and 20 of the General Obligation Bond 13 Act, Section 5.242 of the State Finance Act, and Section 14 4 of the Baccalaureate Savings Act, all of which pertain 15 to State general obligation bonds. These provisions (i) 16 increased the total authorization for State of Illinois 17 general obligation bonds and refunding bonds; (ii) 18 increased the limits on the amount of State general 19 obligation bond proceeds that may be used for various 20 purposes; and (iii) created the General Obligation Bond 21 Rebate Fund, authorized the transfer of money into that 22 Fund, and provided an irrevocable continuing 23 appropriation of amounts necessary to preserve the 24 tax-free status of interest earned by owners of State 25 general obligation bonds. Article IV also contained 26 other provisions. 27 (2) Section 8 of Article III of Public Act 85-1135, 28 effective September 1, 1988, contained provisions 29 amending Sections 2, 4, 11, and 13 of the Build Illinois 30 Bond Act. These provisions (i) increased the total 31 authorization for Build Illinois bonds; (ii) increased SB146 Engrossed -2- LRB9100650EGfg 1 the limits on the amount of Build Illinois bond proceeds 2 that may be used for public infrastructure purposes; and 3 (iii) amended the Build Illinois bond repayment 4 schedules. 5 (3) In addition, Public Act 85-1135 contained 6 provisions relating to tax reform and creating the Water 7 Pollution Control Revolving Fund loan program. 8 (4) On August 26, 1998, the Cook County Circuit 9 Court entered an order in the case of Oak Park Arms 10 Associates v. Whitley (No. 92 L 51045), in which it found 11 that Public Act 85-1135 violates the single subject 12 clause of the Illinois Constitution (Article IV, Section 13 8(d)). As of the time this amendatory Act of 1999 was 14 prepared, the order declaring P.A. 85-1135 invalid has 15 been vacated but the case is subject to appeal. 16 (5) The integrity of the State's contracts and 17 bonds, the protection of bondholders, and the State's 18 continued ability to issue bonds and borrow money are of 19 the greatest importance for the continued health, safety, 20 and welfare of the people of this State. 21 (6) The programs and projects funded with the 22 proceeds of State general obligation bonds and Build 23 Illinois bonds affect many areas of vital concern to the 24 people of this State. The disruption of those programs 25 could constitute a grave threat to the continued health, 26 safety, and welfare of the people of this State. 27 (b) It is the purpose of this amendatory Act of 1999 to 28 prevent or minimize any problems relating to State bonds that 29 may result from challenges to the constitutional validity of 30 Public Act 85-1135, by (1) re-enacting the Sections relating 31 to State bonds that were included in Public Act 85-1135; (2) 32 validating all Build Illinois bonds, State general obligation 33 bonds, and refunding bonds issued pursuant to provisions 34 contained in Public Act 85-1135; (3) affirming the State's SB146 Engrossed -3- LRB9100650EGfg 1 obligations under those bonds and any contracts relating to 2 them; and (4) validating all actions taken in reliance on the 3 provisions contained in Public Act 85-1135 that relate to 4 those bonds or their proceeds. 5 (c) This amendatory Act of 1999 re-enacts Sections 2, 3, 6 16, and 20 of the General Obligation Bond Act, Section 5.242 7 of the State Finance Act, Sections 2, 4, 11, and 13 of the 8 Build Illinois Bond Act, and Section 4 of the Baccalaureate 9 Savings Act, as they have been amended. This re-enactment is 10 intended to remove any question as to the validity or content 11 of those Sections; it is not intended to supersede any other 12 Public Act that amends the text of a Section as set forth in 13 this amendatory Act. The material is shown as existing text 14 (i.e., without underscoring) because, as of the time this 15 amendatory Act of 1999 was prepared, the order declaring P.A. 16 85-1135 invalid has been vacated. 17 (d) The re-enactment by this amendatory Act of 1999 of 18 certain Sections relating to State bonds that were enacted or 19 amended by Public Act 85-1135 is not intended, and shall not 20 be construed, to imply that P.A. 85-1135 is invalid or to 21 limit or impair any legal argument concerning whether those 22 provisions were substantially re-enacted by other Public 23 Acts. 24 (e) All Build Illinois bonds, State general obligation 25 bonds, and refunding bonds issued before the effective date 26 of this amendatory Act of 1999 in reliance on or pursuant to 27 the Sections re-enacted by this amendatory Act of 1999, as 28 set forth in Public Act 85-1135 or as subsequently amended, 29 are hereby validated. All obligations of the State arising 30 under or in connection with those bonds are hereby affirmed. 31 (f) All otherwise lawful actions taken before the 32 effective date of this amendatory Act of 1999 in reliance on 33 or pursuant to the Sections re-enacted by this amendatory Act 34 of 1999, as set forth in Public Act 85-1135 or as SB146 Engrossed -4- LRB9100650EGfg 1 subsequently amended, by any officer, employee, or agency of 2 State government or by any other person or entity, are hereby 3 validated. 4 (g) This amendatory Act of 1999 applies, without 5 limitation, to actions pending on or after the effective date 6 of this amendatory Act. 7 (30 ILCS 330/2) (from Ch. 127, par. 652) 8 Sec. 2. Authorization for Bonds. The State of Illinois 9 is authorized to issue, sell and provide for the retirement 10 of General Obligation Bonds of the State of Illinois in the 11 total amount of $10,895,296,392 herein called "Bonds". 12 Of the total amount of bonds authorized above, up to 13 $2,200,000,000 in aggregate original principal amount may be 14 issued and sold in accordance with the Baccalaureate Savings 15 Act in the form of General Obligation College Savings Bonds. 16 Of the total amount of bonds authorized above, up to 17 $300,000,000 in aggregate original principal amount may be 18 issued and sold in accordance with the Retirement Savings Act 19 in the form of General Obligation Retirement Savings Bonds. 20 The issuance and sale of Bonds pursuant to the General 21 Obligation Bond Act is an economical and efficient method of 22 financing the capital needs of the State. This Act will 23 permit the issuance of a multi-purpose General Obligation 24 Bond with uniform terms and features. This will not only 25 lower the cost of registration but also reduce the overall 26 cost of issuing debt by improving the marketability of 27 Illinois General Obligation Bonds. 28 Bonds shall be issued for the categories and specific 29 purposes expressed in Sections 2 through 8 and Section 16 of 30 this Act. 31 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549, 32 eff. 12-8-97; 90-586, eff. 6-4-98.) SB146 Engrossed -5- LRB9100650EGfg 1 (30 ILCS 330/3) (from Ch. 127, par. 653) 2 Sec. 3. Capital Facilities. The amount of $4,335,266,392 3 is authorized to be used for the acquisition, development, 4 construction, reconstruction, improvement, financing, 5 architectural planning and installation of capital facilities 6 within the State, consisting of buildings, structures, 7 durable equipment, land, and interests in land for the 8 following specific purposes: 9 (a) $1,189,517,246 for educational purposes by State 10 universities and colleges, the Illinois Community College 11 Board created by the Public Community College Act and for 12 grants to public community colleges as authorized by Sections 13 5-11 and 5-12 of the Public Community College Act; 14 (b) $1,126,370,168 for correctional purposes at State 15 prison and correctional centers; 16 (c) $379,711,786 for open spaces, recreational and 17 conservation purposes and the protection of land; 18 (d) $482,280,486 for child care facilities, mental and 19 public health facilities, and facilities for the care of 20 disabled veterans and their spouses; 21 (e) 895,189,341 for use by the State, its departments, 22 authorities, public corporations, commissions and agencies; 23 (f) $818,100 for cargo handling facilities at port 24 districts and for breakwaters, including harbor entrances, at 25 port districts in conjunction with facilities for small boats 26 and pleasure crafts; 27 (g) $147,267,796 for water resource management projects; 28 (h) $16,940,269 for the provision of facilities for food 29 production research and related instructional and public 30 service activities at the State universities and public 31 community colleges; 32 (i) $34,000,000 for grants by the Secretary of State, as 33 State Librarian, for central library facilities authorized by 34 Section 8 of the Illinois Library System Act and for grants SB146 Engrossed -6- LRB9100650EGfg 1 by the Capital Development Board to units of local government 2 for public library facilities; 3 (j) $25,000,000 for the acquisition, development, 4 construction, reconstruction, improvement, financing, 5 architectural planning and installation of capital facilities 6 consisting of buildings, structures, durable equipment and 7 land for grants to counties, municipalities or public 8 building commissions with correctional facilities that do not 9 comply with the minimum standards of the Department of 10 Corrections under Section 3-15-2 of the Unified Code of 11 Corrections; 12 (k) $5,000,000 for grants in fiscal year 1988 by the 13 Department of Conservation for improvement or expansion of 14 aquarium facilities located on property owned by a park 15 district; and 16 (l) $33,171,200 to State agencies for grants to local 17 governments for the acquisition, financing, architectural 18 planning, development, alteration, installation, and 19 construction of capital facilities consisting of buildings, 20 structures, durable equipment, and land. 21 The amounts authorized above for capital facilities may 22 be used for the acquisition, installation, alteration, 23 construction, or reconstruction of capital facilities and for 24 the purchase of equipment for the purpose of major capital 25 improvements which will reduce energy consumption in State 26 buildings or facilities. 27 (Source: P.A. 90-1, eff. 2-20-97; 90-8, eff. 12-8-97; 90-549, 28 eff. 12-8-97; 90-586, eff. 6-4-98.) 29 (30 ILCS 330/16) (from Ch. 127, par. 666) 30 Sec. 16. Refunding Bonds. The amount of $2,339,025,000 31 is authorized for the purpose of refunding any State of 32 Illinois general obligation Bonds then outstanding, including 33 the payment of any redemption premium thereon, any reasonable SB146 Engrossed -7- LRB9100650EGfg 1 expenses of such refunding, any interest accrued or to accrue 2 to the earliest or any subsequent date of redemption or 3 maturity of such outstanding Bonds and any interest to accrue 4 to the first interest payment on the refunding Bonds; 5 provided that such refunding Bonds shall mature no later than 6 the final maturity date of Bonds being refunded. 7 Refunding Bonds may be sold in such amounts and at such 8 times, as directed by the Governor, upon recommendation by 9 the Director of the Bureau of the Budget. The Governor shall 10 notify the State Treasurer and Comptroller of such refunding. 11 The proceeds received from the sale of refunding Bonds shall 12 be used for the retirement at maturity or redemption of such 13 outstanding Bonds on any maturity or redemption date and, 14 pending such use, shall be placed in escrow. Proceeds not 15 needed for deposit in an escrow account shall be deposited in 16 the General Obligation Bond Retirement and Interest Fund. 17 This Act shall constitute an irrevocable and continuing 18 appropriation of all amounts necessary to establish an escrow 19 account for the purpose of refunding outstanding general 20 obligation Bonds and to pay the reasonable expenses of such 21 refunding. Any such escrowed proceeds may be invested and 22 reinvested in direct obligations of the United States of 23 America, maturing at such time or times as shall be 24 appropriate to assure the prompt payment of the principal of 25 and interest and redemption premium, if any, on the refunded 26 Bonds. After the terms of the escrow have been fully 27 satisfied, any remaining balance of such proceeds and 28 interest, income and profits earned or realized on the 29 investments thereof shall be paid into the general revenue 30 fund. The liability of the State upon the Bonds shall 31 continue, provided that the holders thereof shall thereafter 32 be entitled to payment only out of the moneys deposited in 33 the escrow account. 34 Except as otherwise herein provided in this Section, such SB146 Engrossed -8- LRB9100650EGfg 1 refunding Bonds shall in all other respects be subject to the 2 terms and conditions of this Act. 3 (Source: P.A. 87-836; 87-873; 88-93; 88-552.) 4 (30 ILCS 330/20) (from Ch. 127, par. 669a) 5 Sec. 20. A separate fund in the State treasury called 6 the "General Obligation Bond Rebate Fund" is hereby created. 7 The State Treasurer is hereby authorized to create such 8 separate accounts within the General Obligation Bond Rebate 9 Fund from time to time in connection with the issuance of 10 Bonds pursuant to this Act and to transfer moneys to the 11 General Obligation Bond Rebate Fund from the Funds described 12 in subsection (a) of Section 19 of this Act at such times and 13 in such amounts as shall be deemed necessary to preserve the 14 exclusion of the interest earned by the owners of Bonds 15 issued under this Act from the federal gross income of such 16 owners. This Act shall constitute an irrevocable and 17 continuing appropriation of all amounts necessary for the 18 purpose described in this Section. 19 (Source: P.A. 85-1135.) 20 Section 10. The State Finance Act is amended by 21 re-enacting Section 5.242 as follows: 22 (30 ILCS 105/5.242) (from Ch. 127, par. 141.242) 23 Sec. 5.242. The General Obligation Bond Rebate Fund. 24 (Source: P.A. 85-1135.) 25 Section 15. The Build Illinois Bond Act is amended by 26 re-enacting Sections 2, 4, 11, and 13 as follows: 27 (30 ILCS 425/2) (from Ch. 127, par. 2802) 28 Sec. 2. Authorization for Bonds. The State of Illinois 29 is authorized to issue, sell and provide for the retirement SB146 Engrossed -9- LRB9100650EGfg 1 of limited obligation bonds, notes and other evidences of 2 indebtedness of the State of Illinois in the total principal 3 amount of $2,036,500,000 herein called "Bonds". Such 4 authorized amount of Bonds shall be reduced from time to time 5 by amounts, if any, which are equal to the moneys received by 6 the Department of Revenue in any fiscal year pursuant to 7 Section 3-1001 of the "Illinois Vehicle Code", as amended, in 8 excess of the Annual Specified Amount (as defined in Section 9 3 of the "Retailers' Occupation Tax Act", as amended) and 10 transferred at the end of such fiscal year from the General 11 Revenue Fund to the Build Illinois Purposes Fund as provided 12 in Section 3-1001 of said Code; provided, however, that no 13 such reduction shall affect the validity or enforceability of 14 any Bonds issued prior to such reduction. Such amount of 15 authorized Bonds shall be exclusive of any refunding Bonds 16 issued pursuant to Section 15 of this Act and exclusive of 17 any Bonds issued pursuant to this Section which are redeemed, 18 purchased, advance refunded, or defeased in accordance with 19 paragraph (f) of Section 4 of this Act. Bonds shall be 20 issued for the categories and specific purposes expressed in 21 Section 4 of this Act. 22 (Source: P.A. 86-44; 86-78; 86-1473.) 23 (30 ILCS 425/4) (from Ch. 127, par. 2804) 24 Sec. 4. Purposes of Bonds. Bonds shall be issued for the 25 following purposes and in the approximate amounts as set 26 forth below: 27 (a) $1,470,419,000 for the expenses of issuance and sale 28 of Bonds, including bond discounts, and for planning, 29 engineering, acquisition, construction, reconstruction, 30 development, improvement and extension of the public 31 infrastructure in the State of Illinois, including: the 32 making of loans or grants to local governments for waste 33 disposal systems, water and sewer line extensions and water SB146 Engrossed -10- LRB9100650EGfg 1 distribution and purification facilities, rail or air or 2 water port improvements, gas and electric utility extensions, 3 publicly owned industrial and commercial sites, buildings 4 used for public administration purposes and other public 5 infrastructure capital improvements; the making of loans or 6 grants to units of local government for financing and 7 construction of wastewater facilities; refinancing or 8 retiring bonds issued between January 1, 1987 and January 1, 9 1990 by home rule municipalities, debt service on which is 10 provided from a tax imposed by home rule municipalities prior 11 to January 1, 1990 on the sale of food and drugs pursuant to 12 Section 8-11-1 of the Home Rule Municipal Retailers' 13 Occupation Tax Act or Section 8-11-5 of the Home Rule 14 Municipal Service Occupation Tax Act; the making of deposits 15 not to exceed $70,000,000 in the aggregate into the Water 16 Pollution Control Revolving Fund to provide assistance in 17 accordance with the provisions of Title IV-A of the 18 Environmental Protection Act; the planning, engineering, 19 acquisition, construction, reconstruction, alteration, 20 expansion, extension and improvement of highways, bridges, 21 structures separating highways and railroads, rest areas, 22 interchanges, access roads to and from any State or local 23 highway and other transportation improvement projects which 24 are related to economic development activities; the making of 25 loans or grants for planning, engineering, rehabilitation, 26 improvement or construction of rail and transit facilities; 27 the planning, engineering, acquisition, construction, 28 reconstruction and improvement of watershed, drainage, flood 29 control, recreation and related improvements and facilities, 30 including expenses related to land and easement acquisition, 31 relocation, control structures, channel work and clearing and 32 appurtenant work; the making of grants for improvement and 33 development of zoos and park district field houses and 34 related structures; and the making of grants for improvement SB146 Engrossed -11- LRB9100650EGfg 1 and development of Navy Pier and related structures. 2 (b) $46,301,500 for fostering economic development and 3 increased employment and the well being of the citizens of 4 Illinois, including: the making of grants for improvement and 5 development of McCormick Place and related structures; the 6 planning and construction of a microelectronics research 7 center, including the planning, engineering, construction, 8 improvement, renovation and acquisition of buildings, 9 equipment and related utility support systems; the making of 10 loans to businesses and investments in small businesses; 11 acquiring real properties for industrial or commercial site 12 development; acquiring, rehabilitating and reconveying 13 industrial and commercial properties for the purpose of 14 expanding employment and encouraging private and other public 15 sector investment in the economy of Illinois; the payment of 16 expenses associated with siting the Superconducting Super 17 Collider Particle Accelerator in Illinois and with its 18 acquisition, construction, maintenance, operation, promotion 19 and support; the making of loans for the planning, 20 engineering, acquisition, construction, improvement and 21 conversion of facilities and equipment which will foster the 22 use of Illinois coal; the payment of expenses associated with 23 the promotion, establishment, acquisition and operation of 24 small business incubator facilities and agribusiness research 25 facilities, including the lease, purchase, renovation, 26 planning, engineering, construction and maintenance of 27 buildings, utility support systems and equipment designated 28 for such purposes and the establishment and maintenance of 29 centralized support services within such facilities; and the 30 making of grants or loans to units of local government for 31 Urban Development Action Grant and Housing Partnership 32 programs. 33 (c) $461,128,600 for the development and improvement of 34 educational, scientific, technical and vocational programs SB146 Engrossed -12- LRB9100650EGfg 1 and facilities and the expansion of health and human services 2 for all citizens of Illinois, including: the making of 3 construction and improvement grants and loans to public 4 libraries and library systems; the making of grants and loans 5 for planning, engineering, acquisition and construction of a 6 new State central library in Springfield; the planning, 7 engineering, acquisition and construction of an animal and 8 dairy sciences facility; the planning, engineering, 9 acquisition and construction of a campus and all related 10 buildings, facilities, equipment and materials for Richland 11 Community College; the acquisition, rehabilitation and 12 installation of equipment and materials for scientific and 13 historical surveys; the making of grants or loans for 14 distribution to eligible vocational education instructional 15 programs for the upgrading of vocational education programs, 16 school shops and laboratories, including the acquisition, 17 rehabilitation and installation of technical equipment and 18 materials; the making of grants or loans for distribution to 19 eligible local educational agencies for the upgrading of math 20 and science instructional programs, including the acquisition 21 of instructional equipment and materials; miscellaneous 22 capital improvements for universities and community colleges 23 including the planning, engineering, construction, 24 reconstruction, remodeling, improvement, repair and 25 installation of capital facilities and costs of planning, 26 supplies, equipment, materials, services, and all other 27 required expenses; the making of grants or loans for repair, 28 renovation and miscellaneous capital improvements for 29 privately operated colleges and universities and community 30 colleges, including the planning, engineering, acquisition, 31 construction, reconstruction, remodeling, improvement, repair 32 and installation of capital facilities and costs of planning, 33 supplies, equipment, materials, services, and all other 34 required expenses; and the making of grants or loans for SB146 Engrossed -13- LRB9100650EGfg 1 distribution to local governments for hospital and other 2 health care facilities including the planning, engineering, 3 acquisition, construction, reconstruction, remodeling, 4 improvement, repair and installation of capital facilities 5 and costs of planning, supplies, equipment, materials, 6 services and all other required expenses. 7 (d) $58,650,900 for protection, preservation, 8 restoration and conservation of environmental and natural 9 resources, including: the making of grants to soil and water 10 conservation districts for the planning and implementation of 11 conservation practices and for funding contracts with the 12 Soil Conservation Service for watershed planning; the making 13 of grants to units of local government for the capital 14 development and improvement of recreation areas, including 15 planning and engineering costs, sewer projects, including 16 planning and engineering costs and water projects, including 17 planning and engineering costs, and for the acquisition of 18 open space lands, including the acquisition of easements and 19 other property interests of less than fee simple ownership; 20 the acquisition and related costs and development and 21 management of natural heritage lands, including natural areas 22 and areas providing habitat for endangered species and 23 nongame wildlife, and buffer area lands; the acquisition and 24 related costs and development and management of habitat 25 lands, including forest, wildlife habitat and wetlands; and 26 the removal and disposition of hazardous substances, 27 including the cost of project management, equipment, 28 laboratory analysis, and contractual services necessary for 29 preventative and corrective actions related to the 30 preservation, restoration and conservation of the 31 environment. 32 (e) The amount specified in paragraph (a) above shall 33 include an amount necessary to pay reasonable expenses of 34 each issuance and sale of the Bonds, as specified in the SB146 Engrossed -14- LRB9100650EGfg 1 related Bond Sale Order (hereinafter defined). 2 (f) Any unexpended proceeds from any sale of Bonds which 3 are held in the Build Illinois Bond Fund may be used to 4 redeem, purchase, advance refund, or defease any Bonds 5 outstanding. 6 (Source: P.A. 86-44; 86-78; 86-1028; 86-1473; 87-873.) 7 (30 ILCS 425/11) (from Ch. 127, par. 2811) 8 Sec. 11. Repayment. (a) To provide for the repayment of 9 Bonds and required deposits into reserve funds required to be 10 maintained as security for the Bonds, the Governor shall 11 include an appropriation in each annual State Budget of 12 moneys in the following amounts for the following fiscal 13 years 1986 through 1993: 14 Fiscal Year Amount Appropriated 15 1986 $15,000,000 16 1987 $25,000,000 17 1988 $40,000,000 18 1989 $54,000,000 19 1990 $ 85,400,000 20 1991 $133,600,000 21 1992 $164,400,000 22 1993 $188,900,000 23 To provide for the repayment of Bonds in fiscal years 24 1994 and thereafter, the Governor shall include an 25 appropriation in each annual State Budget of moneys in such 26 amount as shall be necessary and sufficient, for the period 27 covered by such Budget, to pay the interest, as it shall 28 accrue, on all Bonds issued under this Act, to pay and 29 discharge the principal of such Bonds, including any sinking 30 fund redemptions, as shall fall due during such period, to 31 pay the premium, if any, on Bonds to be redeemed prior to 32 maturity and to make required deposits to any reserve funds 33 required to be maintained as security for Bonds or for the SB146 Engrossed -15- LRB9100650EGfg 1 purpose of retiring or defeasing Bonds, including any 2 replenishments in the event of deficiencies in any reserve 3 funds; provided, however, that amounts included in such 4 appropriations for payment of interest on Variable Rate Bonds 5 shall be the maximum amounts of interest which may be payable 6 for the period covered by such Budget after taking into 7 account any credits permitted in the related indenture 8 against the amount of such interest required to be 9 appropriated for such period; and, further provided that such 10 appropriated amount shall not be less than the Annual 11 Specified Amount (as defined in Section 3 of the "Retailers' 12 Occupation Tax Act", as amended) for any such fiscal year. 13 (b) A separate fund in the State Treasury called the 14 "Build Illinois Bond Retirement and Interest Fund" is hereby 15 created. 16 (c) The General Assembly shall annually make 17 appropriations to pay the principal of and interest and 18 premium, if any, on the Bonds sold under this Act and to make 19 required deposits into reserve funds required to be 20 maintained as security for the Bonds from the Build Illinois 21 Bond Retirement and Interest Fund in the following amounts 22 for the following fiscal years 1986 through 1993: 23 Fiscal Year Amount Appropriated 24 1986 $15,000,000 25 1987 $25,000,000 26 1988 $40,000,000 27 1989 $54,000,000 28 1990 $ 85,400,000 29 1991 $133,600,000 30 1992 $164,400,000 31 1993 $188,900,000 32 To provide for the repayment of the Bonds and required 33 reserve fund deposits in fiscal years 1994 and thereafter the 34 General Assembly shall annually make appropriations from the SB146 Engrossed -16- LRB9100650EGfg 1 Build Illinois Bond Retirement and Interest Fund in such 2 amounts as shall be necessary and sufficient to pay the 3 principal of, premium, if any, and interest on the Bonds 4 coming due in each such fiscal year, including any sinking 5 fund redemptions, and to make required deposits to reserve 6 funds for the purpose of securing Bonds or retiring or 7 defeasing Bonds, including replenishment of any deficiencies 8 therein; provided, however, that amounts included in such 9 appropriations for payment of interest on Variable Rate Bonds 10 shall be the maximum amounts of interest which may be payable 11 during such fiscal year after taking into account any credits 12 permitted in the related indenture against the amount of such 13 interest required to be appropriated for such period; and, 14 further provided, that such appropriated amount shall not be 15 less than the Annual Specified Amount for any such fiscal 16 year. If for any reason the State Treasurer and Comptroller 17 fail to (i) credit amounts to the Build Illinois Bond Account 18 (the "Build Illinois Bond Account") in the Build Illinois 19 Fund in the State Treasury created under Section 6z-9 of "An 20 Act in relation to State finance", approved June 10, 1919, as 21 amended, (the "Finance Act") as required by Sections 6z-9 and 22 8.25 of the Finance Act or (ii) make transfers to the Build 23 Illinois Bond Retirement and Interest Fund from the Build 24 Illinois Bond Account as required by Section 8.25 of the 25 Finance Act or (iii) make payments from the Build Illinois 26 Bond Retirement and Interest Fund to the trustee under the 27 Master Indenture as required by Section 13 of this Act, or if 28 for any reason the General Assembly fails to make 29 appropriations from the Build Illinois Bond Retirement and 30 Interest Fund sufficient to pay the principal of and interest 31 and premium, if any, on the Bonds, as the same by their terms 32 shall become due, and to make required deposits into reserve 33 funds required to be maintained as security for the Bonds or 34 to retire or defease Bonds, including replenishment of any SB146 Engrossed -17- LRB9100650EGfg 1 deficiencies, this Act shall constitute an irrevocable and 2 continuing appropriation of all amounts necessary for all of 3 the above purposes, and the irrevocable and continuing 4 authority for and direction to the State Treasurer and the 5 Comptroller to make the necessary transfers and deposits, as 6 directed by the Governor, from the sources specified in 7 Sections 6z-9 and 8.25 of the Finance Act to the Build 8 Illinois Bond Account and from the Build Illinois Bond 9 Account to the Build Illinois Bond Retirement and Interest 10 Fund and to make the necessary payments from the Build 11 Illinois Bond Retirement and Interest Fund to the trustee 12 under the Master Indenture. 13 (Source: P.A. 86-17; 86-44.) 14 (30 ILCS 425/13) (from Ch. 127, par. 2813) 15 Sec. 13. Computation of Principal and Interest; Transfer 16 from Build Illinois Bond Account; Payment from Build Illinois 17 Bond Retirement and Interest Fund. Upon each delivery of 18 Bonds authorized to be issued under this Act, the trustee 19 under the Master Indenture shall compute and certify to the 20 Director of the Bureau of the Budget, the Comptroller and the 21 Treasurer (a) the total amount of the principal of and the 22 interest and the premium, if any, on the Bonds then being 23 issued and on Bonds previously issued and outstanding that 24 will be payable in order to retire such Bonds at their stated 25 maturities or mandatory sinking fund payment dates and (b) 26 the amount of principal of and interest and premium, if any, 27 on such Bonds that will be payable on each principal, 28 interest and mandatory sinking fund payment date according to 29 the tenor of such Bonds during the then current and each 30 succeeding fiscal year. Such certifications shall include 31 with respect to interest payable on Variable Rate Bonds the 32 maximum amount of interest which may be payable for the 33 relevant period after taking into account any credits SB146 Engrossed -18- LRB9100650EGfg 1 permitted in the related indenture against the amount of such 2 interest required to be appropriated for such period pursuant 3 to subsection (c) of Section 11 of this Act. 4 On or before June 20, 1993 and on or before each June 20 5 thereafter so long as Bonds remain outstanding, the trustee 6 under the Master Indenture shall deliver to the Director of 7 the Bureau of the Budget, the Comptroller and the Treasurer a 8 certificate setting forth the "Certified Annual Debt Service 9 Requirement" (hereinafter defined) for the next succeeding 10 fiscal year. If Bonds are issued subsequent to the delivery 11 of any such certificate, upon the issuance of such Bonds the 12 trustee under the Master Indenture shall deliver a 13 supplemental certificate setting forth the revisions, if any, 14 in the Certified Annual Debt Service Requirement resulting 15 from the issuance of such Bonds. The "Certified Annual Debt 16 Service Requirement" for any fiscal year shall be an amount 17 equal to (a) the aggregate amount of principal, interest and 18 premium, if any, payable on outstanding Bonds during such 19 fiscal year plus (b) the amount required to be deposited into 20 any reserve fund securing such Bonds or for the purpose of 21 retiring or defeasing such Bonds plus (c) the amount of any 22 deficiencies in required transfers of amounts described in 23 clauses (a) and (b) for any prior fiscal year, minus (d) the 24 amount, if any, of such interest to be paid from Bond 25 proceeds on deposit under any indenture; provided, however, 26 that interest payable on Variable Rate Bonds shall be 27 calculated at the maximum rate of interest which may be 28 payable during such fiscal year after taking into account any 29 credits permitted in the related indenture against the amount 30 of such interest required to be appropriated for such period 31 pursuant to subsection (c) of Section 11 of this Act. 32 In each month during fiscal years 1986 through 1993, the 33 State Treasurer and Comptroller shall transfer, on the last 34 day of such month, from the Build Illinois Bond Account to SB146 Engrossed -19- LRB9100650EGfg 1 the Build Illinois Bond Retirement and Interest Fund and 2 shall make payment from the Build Illinois Bond Retirement 3 and Interest Fund to the trustee under the Master Indenture 4 of an amount equal to 1/12 of 150% of the amount set forth 5 below for each such fiscal year, plus any cumulative 6 deficiency in such transfers and payments for prior months; 7 provided that such transfers shall commence in October, 1985 8 and such amounts for fiscal year 1986 shall equal 1/9 of 150% 9 of the amount set forth below for such fiscal year: 10 Fiscal Year Amount 11 1986 $15,000,000 12 1987 $25,000,000 13 1988 $40,000,000 14 1989 $54,000,000 15 1990 $85,400,000 16 1991 $133,600,000 17 1992 $164,400,000 18 1993 $188,900,000 19 provided that payments of such amounts from the Build 20 Illinois Bond Retirement and Interest Fund to the trustee 21 under the Master Indenture shall commence on the last day of 22 the month in which Bonds are initially issued under this Act; 23 and, further provided, that the first such payment to said 24 trustee shall equal the entire amount then on deposit in the 25 Build Illinois Bond Retirement and Interest Fund; and, 26 further provided, that the aggregate amount of transfers and 27 payments for any such fiscal year shall not exceed the amount 28 set forth above for such fiscal year. 29 In each month in which Bonds are outstanding during 30 fiscal year 1994 and each fiscal year thereafter, the State 31 Treasurer and Comptroller shall transfer, on the last day of 32 such month, from the Build Illinois Bond Account to the Build 33 Illinois Bond Retirement and Interest Fund and shall make 34 payment from the Build Illinois Bond Retirement and Interest SB146 Engrossed -20- LRB9100650EGfg 1 Fund to the trustee under the Master Indenture of an amount 2 equal to the greater of (a) 1/12th of 150% of the Certified 3 Annual Debt Service Requirement or (b) the Tax Act Amount (as 4 defined in Section 3 of the "Retailers' Occupation Tax Act", 5 as amended) deposited in the Build Illinois Bond Account 6 during such month, plus any cumulative deficiency in such 7 transfers and payments for prior months; provided that such 8 transfers and payments for any such fiscal year shall not 9 exceed the greater of (a) the Certified Annual Debt Service 10 Requirement or (b) the Tax Act Amount. 11 (Source: P.A. 86-17; 86-44; 86-1028.) 12 Section 20. The Baccalaureate Savings Act is amended by 13 re-enacting Section 4 as follows: 14 (110 ILCS 920/4) (from Ch. 144, par. 2404) 15 Sec. 4. Issuance and Sale of College Savings Bonds. In 16 order to provide investors with investment alternatives to 17 enhance their financial access to Institutions of Higher 18 Education located in the State of Illinois, and in 19 furtherance of the public policy of this Act, bonds 20 authorized by the provisions of the General Obligation Bond 21 Act, in a total aggregate original principal amount not to 22 exceed $2,200,000,000 may be issued and sold from time to 23 time, and as often as practicable, as College Savings Bonds 24 in such amounts as directed by the Governor, upon 25 recommendation by the Director of the Bureau of the Budget. 26 Bonds to be issued and sold as College Savings Bonds shall be 27 designated by the Governor and the Director of the Bureau of 28 the Budget as "General Obligation College Savings Bonds" in 29 the proceedings authorizing the issuance of such Bonds, and 30 shall be subject to all of the terms and provisions of the 31 General Obligation Bond Act, except that College Savings 32 Bonds may bear interest payable at such time or times and may SB146 Engrossed -21- LRB9100650EGfg 1 be sold at such prices and in such manner as may be 2 determined by the Governor and the Director of the Bureau of 3 the Budget and except as otherwise provided in this Act. If 4 College Savings Bonds are sold at public sale, the public 5 sale procedures shall be as set forth in Section 11 of the 6 General Obligation Bond Act. College Savings Bonds may be 7 sold at negotiated sale if the Director of the Bureau of the 8 Budget determines that a negotiated sale will result in 9 either a more efficient and economic sale of such Bonds or 10 greater access to such Bonds by investors who are residents 11 of the State of Illinois. If any College Savings Bonds are 12 sold at a negotiated sale, the underwriter or underwriters to 13 which such Bonds are sold shall (a) be organized, 14 incorporated or have their principal place of business in the 15 State of Illinois, or (b) in the judgment of the Director of 16 the Bureau of the Budget, have sufficient capability to make 17 a broad distribution of such Bonds to investors resident in 18 the State of Illinois. In determining the aggregate 19 principal amount of College Savings Bonds that has been 20 issued pursuant to this Act, the aggregate original principal 21 amount of such Bonds issued and sold shall be taken into 22 account. Any bond issued under this Act shall be payable in 23 one payment on a fixed date, unless the Governor and the 24 Director of the Bureau of the Budget determine otherwise. 25 (Source: P.A. 90-1, eff. 2-20-97.) 26 Section 99. Effective date. This Act takes effect upon 27 becoming law.